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Can I trade in a tracker mortgage?

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  • 24-02-2015 7:17pm
    #1
    Karlrove
    Registered Users Posts: 262 ✭✭


    Hi, Im looking for a financial someone to help me with an issue. I Have a mortgage of 300k. I'm married and my partner has a house that we live in, the family home. The property is rented out and all is fine. However, would there be an opportunity to trade in the tracker rate that's on the second house(rented) with the bank in exchange for some sort of write down so we could sell the house. The house is in a good location and we would sell it I believe.

    Now I know i'll get opinions, all welcome btw. However, is there anyone who specialises with going in and talking/dealing to the banks who could have a better chance of securing this ?

    Any help/advice welcome. If theres any names, please PM me.

    Cheers guys.


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    #2
    The_Morrigan
    Registered Users Posts: 9,368 ✭✭✭The_Morrigan


    Sorry OP but professional advice won't be given here. Contact your bank to discuss this, they are the only ones who can negotiate this with you.


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    #3
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    Be very careful, it's probably a term of the tracker that it's your principal residence. Letting them know it's rented out could be an issue.

    I recently asked for a write down on a similar basis and was given a flat out no (Ulsterbank).


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    #4
    Eldarion
    Registered Users Posts: 484 ✭✭Eldarion


    You may have missed your window of opportunity. I know a few years back they were throwing significant writedowns at people to try to reduce the number of trackers out there but I get the impression they're not hurting as much these days and have less of a need to continue to make deals like this.


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    #5
    Mezcita
    Registered Users Posts: 2,328 ✭✭✭Mezcita


    Eldarion wrote: »
    You may have missed your window of opportunity. I know a few years back they were throwing significant writedowns at people to try to reduce the number of trackers out there but I get the impression they're not hurting as much these days and have less of a need to continue to make deals like this.

    I've never seen any proof to this anywhere.

    People who were in severe financial difficulties maybe. But not for the normal punter who had a tracker and was still servicing the loan.


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    #6
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    This exact question came up on 'The Business' on RTE radio last Saturday (if you look for a podcast, I'm sure you can find it). Unfortunately- the answer given was a flat 'no'- aka the same as the experience of the other posters in this thread.

    Vis-a-vis the tracker and whether or not the property is your PPR (or not)- Bank of Ireland are currently fighting with at least one landlord who took loans from them on preferential terms with the understanding they were for his PPR- when in actual fact they were used for multiple buy-to-let properties.

    They did have trackers for buy-to-let property- however, the spread on them was a lot higher than for owner-occupiers. They want the difference- as the properties are now being disposed of.

    Just keep it in mind (I'm not saying you're in the same situation- but it would be prudent to ensure you have complied with all the terms of your loan, before approaching your lender- and even then they are not offering preferential treatment- other than in cases of financial distress).


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    #7
    Dr_Bill
    Registered Users Posts: 295 ✭✭Dr_Bill


    I can't see a good reason to trade in a tracker mortgage and opt for a fixed/variable rate mortgage that will cost more money over the term of the loan.

    Most mortgages have a clause in them that you must inform the bank of any fundamental changes in the terms, such as moving out of a principle private residence and renting it out. The bank would be then typically entitled to carry out a review of the mortgage and might move to renegotiate the terms of the mortgage.

    You would be well advised to seek independent financial advice prior to speaking with your mortgage provider so you have all the facts to make an informed decision.


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    #8
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    One good reason- would be if a person came into a sum of money (inheritance or whatever). The return on this capital might be very low- however, its nice to have the liquidity available in case an investment opportunity materialised. If a discount were available for repaying the mortgage early- it might be a good use of such a lumpsum. If there was no discount available- someone might decide instead to sit on their cash......?


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    #9
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    To be honest some of us are teasingly close to peaking out of negative equity and a write down would allow us to sell and break even. In the alternative some want to do everything above board in relation to getting a proper BTL but want something in return, something we're not entitled to TBH but there we are.


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